McKay Securities PLC DISPOSAL OF 30 LOMBARD STREET, EC3 (7405X)
December 23 2019 - 1:00AM
UK Regulatory
TIDMMCKS
RNS Number : 7405X
McKay Securities PLC
23 December 2019
McKAY SECURITIES Plc AGREES GBP76.5M DISPOSAL OF 30 LOMBARD
STREET, EC3
McKay Securities Plc (McKay), the only UK REIT specialising
entirely in the London and South East office, industrial and
logistics markets, announces that it has exchanged contracts to
sell the long leasehold interest in 30 Lombard Street, a prime
office building located in the heart of the City of London. The
headline sale price of GBP76.5m (prior to the deduction of
outstanding tenant incentives, tax and sale costs), reflects a net
initial yield of 4.16% on a topped-up basis and a capital value of
GBP1,308 per sq ft.
Completion of the sale is subject to Landlord's consent and
satisfaction of certain conditions relating to highways matters,
potentially requiring third party approval, with an estimated
timescale of circa three months. A further announcement will be
made when the sale completes.
The redevelopment of 30 Lombard Street by McKay was completed in
early 2019. Providing 58,500 sq ft over 11 floors, the BREEAM
'Excellent' building was pre-let shortly before completion to FTSE
100 wealth manager, St. James's Place plc on a 15 year lease until
2034 (without breaks) securing a net rent of GBP3.4 million pa
(GBP65.00 per sq ft overall). Together with its core City location,
it offers outstanding column free office space and excellent
natural light, with a substantial roof terrace.
McKay acquired the long leasehold interest of the site in 1999
with a multi-let 36,000 sq ft 1960's office building generating
rental income of GBP1.1 million pa. Income was retained from the
building while planning consent was achieved for the current
scheme, securing a 62% increase in lettable area. McKay's
successful capital raising in 2014 facilitated the speculative
redevelopment of the property, resulting in the generation of
shareholder value and the enhancement of this historic City
location with a building of the highest quality.
On completion the sale, proceeds will initially be used to pay
down debt, prior to re-investment in new acquisitions and portfolio
opportunities.
Knight Frank acted for McKay and BNP Paribas acted for the
purchaser.
-Ends-
Date: 23(rd) December 2019
For further information, please contact:
McKay Securities Plc FTI Consulting
Simon Perkins, CEO Dido Laurimore, Ellie Sweeney
Giles Salmon, CFO 0203 727 1000
mckay@fticonsulting.com
This announcement contains inside information. The person
responsible for the release of this announcement is Giles Salmon,
CFO.
About McKay
McKay Securities Plc is a commercial property investment company
with Real Estate Investment Trust (REIT) status, listed on the main
market of the London Stock Exchange. It specialises in the
development and refurbishment of office, industrial and logistics
buildings within established and proven markets of London and South
East England. The portfolio, which was valued at 30 September 2019
at GBP492.14 million, comprises 32 properties in strong and
established areas, which deliver diversity in terms of both sector
and location.
www.mckaysecurities.plc.uk
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END
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